NewsFunds To Nurture The Portfolio Without Sacrificing Sustainability

Funds To Nurture The Portfolio Without Sacrificing Sustainability

Responsible investing is changing the way we invest, the way we shop and also the way we eat. And its penetration into the food sector brings new opportunities to the table for investors. They explain it, from Schroders, Mark Lacey, responsible for raw materials, and Felix Odey, analyst of renewable energies.

The current agricultural and food system “is not sustainable from the point of view of carbon emissions (…), biodiversity, waste and health,” they point out. See more articles on sustainability in the Economist Sustainable Investing and ESG.

The responsible turn in the way of producing food, and the change in the diet of consumers (who are looking for healthy products) have opened a range of possibilities. Linked, for example, to the use of technology in agriculture, such as the use of sensors that measure soil data and minimize the use of fertilizers. Investment options related to the fashion of healthy eating also appear. Schroders experts say the success of milk alternatives “is good news for meat substitutes, which may not be far behind.

“This technology, which today represents 1% of the meat market,” could mimic dairy substitutes and multiply tenfold in 10 years. “A diet rich in meat “is not only bad for our health, and puts enormous pressure on limited agricultural resources, since it uses large tracts of land,” they explain.

The most profitable products
In the heat of these and many other derivatives, those products that invest in companies linked to agriculture and food from the prism of sustainability have been gaining appeal. If we look at the funds of these themes, also labeled as article 9 or 8 of the European Regulation of Disclosure of information related to sustainability, we find that the most profitable at 3 years is the Pictet-Nutrition P EUR .

It is a sustainable product per brochure, classified, according to Morningstar, as article 9 (that is, it is considered an impact product). Among its main portfolio positions we find Kerry Group(a company dedicated to nutrition, with a focus on having a positive impact on the planet) or the agricultural machinery manufacturer Jhon Deere.

In second position, with 10.66% annualized at 3 years, is the BNP Paribas Smart Food N Cap . The term Smart in its name refers to Sustainably manufactured and responsibly transformed . It invests “in companies linked to the sustainable food supply chain.” In the portfolio, once again the Kerry Group, as well as the packaging manufacturer Graphic Packaging and the restaurant group with a sustainable approach Compass Group.

For its part, DPAM INVEST B – Equities Sustainable Food Trends B Cap invests in agri-food companies, which it selects based on ESG criteria. Among them, the Dutch health and nutrition company Royal DSM. At 3 years, an annualized 10.5% is recorded. Fourth, a BlackRock product, BGF Nutrition E2, a sustainable fund per prospectus that is positioned in shares of companies linked to food and agriculture.

Among them, the Canadian Jamieson Wellness, which manufactures food supplements of natural origin. And a timid 1% has revalued the DJE – Agrar & Ernährung PA (EUR), which, yes, so far in 2021 has risen by 21%.

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